One of the biggest concerns many business owners face when attempting in-house debt collection is the risk of failure. If you are putting out your own money, time and your company’s valued resources in an effort to collect debt and you don’t succeed then you will have put yourself further in the hole by spending good money to chase after bad debt.
You can shift the risk and avoid the constant worrying and anxiety of the “success or failure” of internal debt collection efforts and the possibility of causing further financial damage to your company that was already injured by bad debtors failing to pay what they owe you. Why risk pouring salt on the wound and making it worse?
Turning over your bad debt to an experienced debt collection agency allows you to shift all of the risk from your company to a third-party. Since most debt collectors work on a contingency-basis, you will owe nothing if they don’t collect…so you have nothing to lose and all the risk is shifted to the debt collection agency. If they don’t collect, it is their time, money and resources that are spent on this roll of the dice, not yours.